Activision's Q1 2014 is so good it's raising 2014's outlook

Activision's net revenue in Q1 2014 was $1.11 billion, higher than its expected $885 million, but lower than Q1 2013's $1.32 billion. Activision is raising its net revenue outlook for calendar year 2014 from $4 billion to $4.22 billion.

"The increase in Activision Blizzard's GAAP outlook for 2014 is a result of the company's actual Q1 GAAP performance (which was higher than its prior Q1 GAAP outlook for the reasons cited on the first page of this press release), as well as the company's current expectations for the remainder of the year," the report says.

Activision CEO Bobby Kotick attributed the better-than-expected performance to Blizzard franchises World of Warcraft, Diablo, and Hearthstone: Heroes of Warcraft, and Activision's Skylanders and Call of Duty franchises. Blizzard brought in 60 percent of the company's net revenue, while Activision accounted for 31 percent and distribution brought in 9 percent.

Activision's net income in Q1 2014 was down from last year, falling from $456 million to $293 million. Next-gen sales (PS4, Xbox One and Wii U) brought in $108 million net revenue in Q1, while current-gen sales (PS3, Xbox 360 and Wii) brought in $546 million, for a console total of $654 million. That's 59 percent of Activision's total net revenue for the quarter. PC accounted for $100 million (9 percent), online did $201 million (18 percent), and mobile made $83 million (7 percent).

Activision is spending $500 million on its console MMO Destiny, and Kotick reiterated his high hopes for the game in today's report: "We have a strong product pipeline for the balance of the year, beginning with the September 9 planned launch of Destiny, which we believe could become our next billion dollar franchise and the largest new videogame IP launch in history."